Aviation ABS/Secured Loan/EETC Transactions See Little Disruption From Bank Turmoil

The recent failures and ongoing credit issues across certain U.S. and European banks have had little to no bearing on the aviation-secured finance sector to date. Aviation-related bank financing for aircraft and engines is still widely available to lessors and airlines, while investors remain active across the sector. DBRS Morningstar notes that there has not been any credit impact to date on transaction counterparty exposures, nor any effect on deal performance or structural features on aircraft asset-backed securities, secured loans, or enhanced equipment trust certificates.

We will continue to monitor the evolving bank environment and any negative implications for the aviation sector, but do not expect any near-term negative effects to individual transactions, counterparty exposures, or performance metrics.